Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: EHTH

eHealth Shares Rise 25% After Achieving 100% Increase in Quarterly Medicare Advantage Sales

Share on Stocktwits

Source:

Online medical exchange operator eHealth Inc.'s shares traded higher after the firm reported preliminary financial results for Q4/19 and FY/19. The company advised that both quarterly and annual revenues exceeded prior estimates.

Private online health insurance exchange operator eHealth Inc. (EHTH:NASDAQ) yesterday announced preliminary, unaudited financial results and select operating metrics for the fourth quarter and fiscal year ended December 31, 2019. The firm advised that the preliminary financial results and selected operating metrics are based upon management's initial review of operations in Q4/19 and FY/19 according to the best available data as of January 23, 2020.

The company reported that for Q4/19 it expects revenue to be in the range of $257.5-259.5 million including Medicare segment revenue in the range of $239-240.5 million. In the same corresponding period, the firm expects GAAP net income in the range of $53-$55 million and adjusted EBITDA to be in the range of $98.5-100.5 million.

The firm indicated that for FY/19 it expects revenue to be in the range of $462-464 million compared to previous guidance of $365-385 million including Medicare segment revenue expected in the range of $403.5-405 million compared to prior guidance of $318-333 million. For the full-year, the firm expects GAAP net income to be in the range of $31-33 million, compared to the company's guidance of $20.9-25.9 million and adjusted EBITDA for FY/19 is expected to be in the range of $89-$91 million, compared to the company's guidance of $65-70 million.

The firm indicated that the number of approved members for all Medicare products grew 88% during Q4/19 when compared to Q4/18. The company highlighted that its Medicare Advantage products grew 100% over the same time period. The company added that for full-year 2019, the number of approved members for all Medicare products grew 81% compared 2018 with approved members for Medicare Advantage products growing 88% over the same time period.

The company's CEO Scott Flanders commented, "I am proud of our achievements in 2019. After raising our guidance twice in the past year, we significantly exceeded our financial and operating targets driven by consistently strong execution throughout the year. 2019 culminated with an exceptional performance by our team during the fourth quarter Medicare annual enrollment period. Our marketing and business development organizations drove record consumer demand to the eHealth platform allowing us to grow fourth quarter approved Medicare members in excess of 85%...We remain excited about the Medicare market opportunity and significant growth potential ahead of us and are looking forward to sharing our outlook for 2020 as part of our fourth quarter earnings release next month."

The company describes its business as a leading private online health insurance exchange where individuals, families and small businesses can compare health insurance products from brand-name insurers side by side and purchase and enroll in coverage online or by phone. eHealth (www.ehealthinsurance.com) is licensed to sell health insurance through its subsidiaries in all 50 states and the District of Columbia. Additionally, the firm offers educational resources, telephone support, and online and pharmacy-based tools to help Medicare beneficiaries navigate Medicare health insurance options, choose the right plan and enroll in select plans online or over the phone through Medicare.com (www.Medicare.com), eHealthMedicare.com (www.eHealthMedicare.com), GoMedigap (www.goMedigap.com) and PlanPrescriber.com (www.PlanPrescriber.com).

eHealth started the day with a market capitalization of around $2.2 billion with approximately 23.1 million shares outstanding and a short interest of about 16.7%. EHTH shares opened nearly 19% higher today at $115.44 (+$18.31, +18.85%) compared to yesterday's closing price of $97.13 and established a new 52-week intraday high price today of $130.00. The stock has traded today between $110.92 and $130.00 per share and is currently trading at $122.55 (+$25.41, +26.16%).

[NLINSERT]

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.





Want to read more about Healthcare Services investment ideas?
Get Our Streetwise Reports Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe